Belgium: Pillar Two Mandatory Notification for MNEs and Large Domestic Groups

Multinational enterprise (MNE) groups and large Belgian domestic groups within the scope of these regulations and operating in Belgium are required to submit a detailed notification form to obtain a Pillar Two group registration number from the Belgian trade register, known as the Crossroad Bank for Enterprises (CBE).

Key Deadlines for Notification

Entities must act promptly as the form must be submitted by the later of two deadlines: 45 days from the publication of the royal decree of May 15, 2024, in the Belgian official gazette (yet to be published) or 30 days after the beginning of their first Pillar Two reporting year.

For groups whose first Pillar Two reporting year is already in progress or about to begin, there is a grace period of 45 days after the publication of the royal decree. This extended timeline is critical for calendar year in-scope groups under the Belgian Pillar Two rules. The royal decree has not yet been published, so the exact deadline remains pending.

The urgency is driven by the requirement to make prepayments for top-up taxes under the income inclusion rule or as a qualified domestic minimum top-up tax, due by December 20, 2024, for the first applicable year of the Pillar Two provisions.

Registration Process and Requirements

According to the law of December 19, 2023, amended on May 2, 2024 (detailed in our Tax Alert of May 6, 2024), in-scope MNE groups and large Belgian domestic groups must obtain a unique Pillar Two group registration number from the CBE. This registration is essential for compliance and facilitating (pre)payments where a Pillar Two top-up tax is due in Belgium.

All in-scope groups with Belgian constituent entities must register, regardless of the ultimate parent entity's (UPE) location or whether top-up taxes will be owed in Belgium.

The registration involves:

1. Notification Form Submission: Each group with at least one Belgian constituent entity must register initially via a notification form accessible online through the "MyMinfin" portal.
   • If the UPE is in Belgium, it is responsible for the form submission. Multiple Belgian-based UPEs require a designated representative to submit the form.
   • If the UPE is not in Belgium, the single operating entity in Belgium or a designated representative (if multiple entities operate) must submit the form.
2. Designation of Representative: When multiple Belgian entities are involved, a separate form must be filed to designate a representative.

Upon successful submission, the Belgian tax administration will register the group with the CBE, sending the Pillar Two group registration number via email to the entity responsible for the registration.

Required Information for the Notification Form

As of now, the online filing platform on MyMinfin is not yet available. However, the notification form's content is published in Dutch and French, and the XML conversion tool is available in Dutch, English, and French. The form requires extensive group information and is divided into four main sections, as detailed in screenshots from the XML conversion tool.

Entities should prepare to comply promptly once the royal decree is published and the MyMinfin portal becomes accessible, ensuring they meet the stringent deadlines and avoid any compliance issues.

For further details and updates, groups are advised to refer to the official guidance and monitor announcements from the Belgian tax administration.

Sources/recommended read:

• Pillar 2 - Binnenkort opening systeem verplichte notificatie voor MNO-groepen en omvangrijke binnenlandse groepen | FOD Financiën (belgium.be)
• Pillar 2 - Ouverture du système de notification obligatoire pour les groupes d’EMN ou groupes de grande envergure | SPF Finances (belgium.be)
• Action required: Mandatory Pillar Two notification in Belgium for MNEs and large domestic groups | Tax Alerts | Deloitte Belgium